To reply to your question about legality directly: I don't think the arrangement as such is illegal [1], rather, the fact that the corporation hasn't paid taxes

To reply to your question about legality directly: I don't think the arrangement as such is illegal [1], rather, the fact that the corporation hasn't paid taxes on it's income is what the problem is. I'll give you my gut feeling here (and please take it as just that--instinct. You really must see a professional expert on this matter): I think you're OK. You'll probably fly under the radar, and I don't think there is enough money here to justify a huge investigation. Your likely worst case scenario is a bill for back taxes with some interest. [1] I am not a lawyer, accountant or tax expert! [edit]: Oh, and good luck! As a non-US citizen who has had to deal with the US tax system, I'll vouch for how easy it is to make a mistake.